Asked by
Maggie Nichols
on Dec 01, 2024
Verified
A firm's capital is comprised of debt and equity. The portion that each component represents makes up the firm's capital structure.
Capital Structure
The mix of different forms of capital financing used by a company, including debt, equity, and other financial instruments.
Debt
Amount of money borrowed by one party from another, used by many corporations to grow beyond what they could from earnings alone.
Equity
The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.
- Gain an understanding of the various components that make up a firm's capital, along with their associated costs.
Verified Answer
GH
Learning Objectives
- Gain an understanding of the various components that make up a firm's capital, along with their associated costs.